Stitch Fix (SFIX) Stock Forecast & Price Target

Stitch Fix Inc. is projecting sales growth for FY26, expecting revenues between $1.28 billion and $1.33 billion, representing an increase of 1%-5% year-over-year. The company's latest quarter demonstrated potential for revenue acceleration, with total revenue reaching $342 million, a 7.3% increase, surpassing prior guidance and consensus estimates. Additionally, the average order value (AOV) has risen by 7.6% year-over-year, supported by a refreshed merchandise assortment that includes a diverse range of styles and categories, which bodes well for continued consumer engagement and sales performance.

Stitch Fix Inc reported a decline in key financial metrics, indicating potential challenges ahead, including a 5.2% year-over-year decrease in active clients, which fell to 2.307 million. The company's gross margin contracted by 180 basis points to 43.6%, underperforming against both the consensus and previous year’s figures, signaling pressure on profitability. Furthermore, the revised adjusted EBITDA margin guidance suggests a decline to 2.3%-3.4%, reflecting a deterioration from last year's margin of 3.9% and implying ongoing difficulties in achieving revenue growth and maintaining margins.